Most of your donors do not itemize, so for years their gifts came with no tax break at all. That changed for tax year 2026. Here is what is different, in plain terms, and what to say about it without giving tax advice.
What changed
Three things changed for gifts made in 2026. Two help your small and mid-size donors. One quietly hurts them.
Donors who take the standard deduction can deduct again. Up to $1,000 on a single return, or $2,000 on a joint return. It is cash gifts only, and it is written into law with no expiry date (26 U.S.C. §170(p), as amended by Public Law 119-21, 2025).
About nine in ten filers take the standard deduction, so for most of your donor list this is the first tax benefit their giving has carried in years.
The catch for donors who do itemize
Itemizers now have a floor. They can only deduct the part of their giving that goes above 0.5% of their income (26 U.S.C. §170(b)(1)(I), 2025). On a $200,000 income, the first $1,000 of giving no longer counts.
One detail matters here, and a lot of write-ups get it wrong. That floored amount only carries to a future year if the donor also gave more than their annual ceiling. Otherwise it is gone for good. If a donor asks, this is the moment to send them to their own tax preparer.
What this means for your appeal
You are not a tax adviser and you should not sound like one. But you can tell people something true and useful that most of them have not heard.
One sentence is enough:
“New for 2026: you can deduct up to $1,000, or $2,000 if you file jointly, even if you take the standard deduction. Ask your tax preparer how it applies to you.”
That does three jobs. It gives a reason to give this year rather than next. It reaches the donors who never got a benefit before. And it points them somewhere qualified for anything past that.
Gifts that do not qualify
The new deduction does not cover everything. Gifts to donor advised funds do not count. Neither do gifts to supporting organizations, or to most private foundations. If your nonprofit is a public charity, which nearly all small nonprofits are, your donors are fine.
If you take corporate gifts
Companies now have a floor of their own. A business can only deduct giving above 1% of its taxable income, up to the existing 10% ceiling (26 U.S.C. §170(b)(2)(A), 2025). A local business that gives you $500 a year may find it no longer deducts anything.
That is worth knowing before you ask. A company that used to give a small amount each year may do better giving two years at once.
What to do this month
- Add the one-line note to your year-end appeal, your donation page and your thank-you emails.
- Flag your business donors. A quick call beats a surprise in April.
- Write down which donors ask about taxes. That is a major gift conversation waiting to happen.
This is general information, not tax advice. Ember is not a tax adviser and neither is your development director. Point donors to their own preparer for anything specific to them.